ADMAS UNIVERSITY

SCHOOL OF POSTGRADUATE
MASTERS OF BUSINESS ADMINSTRATION
OPRATIONAL MANAGEMENT ASSIGNMENT 3

Submitted by :

Abraham Mulugeta ID no: 1363/22

Bereket Asmamaw ID No: 1369/22

Betelhem Asnake ID No: 1372/22

Bontu Desalegn ID No: 1331/22

Dawit Asfaw ID No: 1041/22

Submitted to: Dr. MEBRATU T/Haymanot (PHD)

December, 2023
Table of Contents
1.Understanding the Livestock Supply Chain...............................................................................................2
1.1Definition and scope of the livestock supply chain.............................................................................2
2. Supply Chain Structure of Livestock in Ethiopia.....................................................................................2
2.1 Components of the Livestock Supply Chain in Ethiopia...................................................................3
2.2. Overview of the Livestock Industry..................................................................................................5
3 Features Characterizing Livestock Supply Chains in Developing Countries............................................7
3.1Fragmentation of the Supply Chain....................................................................................................7
3.2 Sustainability Challenges and Opportunities.....................................................................................9
4 Recommendations to Enhance Efficiency and Effectiveness in Ethiopia Livestock Supply Chains.........9
References.................................................................................................................................................12
1.Understanding the Livestock Supply Chain

1.1Definition and scope of the livestock supply chain.

The livestock supply chain encompasses the entire process of producing,
processing, and distributing livestock and livestock products from farm to
consumer. It begins with the breeding and raising of animals on farms, where
factors such as genetics, nutrition, and healthcare play crucial roles in ensuring the
health and productivity of the livestock. Once the animals reach market weight or
maturity, they are typically transported to processing facilities where they are
slaughtered, and their meat is prepared for distribution. After processing, the meat
and other products move through various distribution channels, including
wholesalers, retailers, and ultimately reach consumers. Along this supply chain,
there are numerous stakeholders such as farmers, processors, distributors, and
retailers, each contributing to the overall efficiency and quality of the system.

Efficiency and sustainability are critical considerations in the livestock supply

chain, as it involves complex interactions between environmental, economic, and
social factors. Issues such as animal welfare, resource use, and transportation
logistics are central concerns that impact the overall sustainability of the livestock
supply chain. Additionally, the globalization of the food industry has led to the
integration of international markets, creating a complex network that requires
careful management to ensure the delivery of safe, nutritious, and ethically
produced livestock products to consumers worldwide.
 2. Supply Chain Structure of Livestock in Ethiopia
The livestock supply chain plays a crucial role in the economy, providing
livelihoods for millions and supplying essential protein to growing populations.
The livestock supply chain in Ethiopia is characterized by a diverse set of
challenges and opportunities. While smallholder farming systems and
infrastructure limitations pose obstacles, technological interventions and
sustainable practices offer avenues for improvement. Addressing these challenges
requires a multi-stakeholder approach, involving governments, NGOs, and the
private sector to create a resilient and sustainable livestock supply chain in
Ethiopia.

2.1 Components of the Livestock Supply Chain in Ethiopia

 Components of the Livestock Supply Chain

 The livestock supply chain involves various components, from breeding and
production to processing and distribution. Each stage plays a critical role in
ensuring a steady and efficient flow of livestock products to consumers.
Here are the key components of the livestock supply chain:

 Breeding and Genetics:

 Selection and Breeding Programs: Livestock breeding involves selecting

animals with desirable traits, such as high meat yield, milk production, or
disease resistance. Breeding programs aim to improve the genetic quality of
the herd or flock.

 Artificial Insemination (AI): AI is a common practice in livestock breeding,

allowing for the controlled introduction of superior genetics and facilitating
genetic improvement.

 Raising and Production:

 Farm Operations: Livestock are raised on farms, ranches, or specialized
facilities. Farmers manage feeding, healthcare, and overall herd
management.

 Feed and Nutrition: Livestock are fed a balanced diet to ensure optimal
growth and productivity. This may involve grazing on pasture, feeding on
concentrated feeds, or a combination of both.

 Healthcare and Disease Management: Farmers monitor the health of their

livestock and implement disease prevention measures, including
vaccinations and veterinary care.

 Transportation:

 Moving Livestock: Livestock may be transported from breeding farms to

production facilities or between different stages of the supply chain.
Transportation considerations include animal welfare, biosecurity, and
compliance with regulations.

 Supply Chain Logistics: Efficient transportation logistics are essential to

move livestock products from farms to processing facilities and then to
distribution points.

 Processing and Slaughter:

 Slaughterhouses and Processing Plants: Livestock are processed into meat

and other products in specialized facilities. This involves slaughtering,
dressing, and packaging.

 Quality Control: Stringent quality control measures are implemented to

ensure food safety, hygiene, and adherence to regulations.

 Distribution and Marketing:

 Wholesalers and Distributors: Processed livestock products are distributed to
wholesalers and distributors, who then supply retail outlets and other
customers.

 Retail: Livestock products reach consumers through various retail channels,

including supermarkets, butcher shops, and restaurants.

 Consumption:

 End Consumers: Consumers purchase and consume various livestock

products, such as meat, dairy, and eggs, as part of their diet.

 Food Service Industry: The food service sector, including restaurants and
catering services, plays a significant role in the consumption of livestock
products.

 Waste Management:

 By-Product Utilization: Waste generated during processing, such as bones,

hides, and offal, may be utilized for various purposes, including the
production of pet food, fertilizers, and industrial applications.

 Environmental Considerations: Proper waste management is essential to

minimize the environmental impact of the livestock supply chain.

 Regulatory Oversight:

 Government Agencies: Regulatory bodies at local, national, and

international levels oversee the livestock supply chain to ensure compliance
with health, safety, and environmental standards.
  Certification Programs: Some livestock products may be certified by third-
party organizations, indicating adherence to specific quality and ethical
standards.

 Overall, the livestock supply chain is a complex network involving multiple

stakeholders, each contributing to the production, processing, and
distribution of livestock products. Coordination and collaboration among
these components are crucial for a sustainable and efficient supply chain.

2.2. Overview of the Livestock Industry

 Key players and stakeholders in the industry.
 The livestock industry is a significant sector within agriculture that involves
the breeding, raising, and management of animals for various purposes, such
as food production, fiber, and other by-products. Livestock includes a
diverse range of animals, with the most common types being cattle, sheep,
goats, poultry (chickens), and others like and bees. Here is an overview of
key aspects of the livestock industry:

 Food Production:

 Meat: Livestock are raised for their meat, which is a major source of protein
in the human diet. Different animals provide various types of meat,
including beef (cattle), lamb (sheep), pork (pigs), and poultry (chickens,
turkeys).

 Dairy Products: Some livestock, particularly cattle, are raised for milk and
dairy product production. This includes milk, cheese, butter, and yogurt.

 Eggs: Poultry, especially chickens, are raised for egg production. Eggs are a
versatile and widely consumed protein source.

 Fiber Production:
 Wool: Sheep are raised for their wool, which is used to produce textiles such
as clothing and blankets.

 Goat Fiber: Certain breeds of goats, such as Angora and Cashmere goats, are
raised for their fiber (mohair and cashmere).

 By-Products:

 Livestock also provide by-products such as leather, gelatin, and various

pharmaceuticals.
 Livestock Farming Practices:

 Intensive Farming: In many modern agricultural systems, livestock are

raised in intensive farming operations that involve confinement in feedlots
or barns. This approach aims to maximize efficiency and production.

 Grass-fed and Pasture-Raised: Some livestock, particularly cattle, are raised

on pasture or grass-fed systems, emphasizing natural grazing and reducing
the reliance on concentrated feeds.

 Challenges and Concerns:

 The livestock industry faces various challenges, including concerns about

environmental impact, animal welfare, and the use of antibiotics and
hormones.

 Balancing the growing global demand for meat and animal products with
sustainable and ethical practices is an ongoing challenge.

 Technology and Innovation:

  The industry has embraced technology for breeding, monitoring animal
health, and optimizing feed efficiency. This includes the use of genetic
engineering, precision farming, and data analytics.
 Global Impact:

 The livestock industry is a major contributor to the economies of many

countries and plays a crucial role in global food security.

 Livestock production can also have environmental impacts, including

deforestation, greenhouse gas emissions, and water usage.

 In summary, the livestock industry is a diverse and crucial component of

agriculture, providing essential products for human consumption and various
other industries. Balancing the need for increased production with
sustainability and ethical considerations remains a central challenge for the
industry.
.

3 Features Characterizing Livestock Supply Chains in

Developing Countries
Livestock supply chains in developing countries exhibit distinctive features
influenced by a range of economic, social, and environmental factors.
Understanding these characteristics is essential for developing effective strategies
to enhance the efficiency, sustainability, and inclusivity of these supply chains.
This section provides an overview of key features characterizing livestock supply
chains in Ethiopia.
3.1Fragmentation of the Supply Chain

Smallholder Dominance:
 Smallholder farmers often form the majority of livestock producers in
Ethiopia, contributing significantly to the supply chain.

Limited Integration:
 The supply chain is characterized by limited integration and coordination
among its various components, including breeding, farming, processing, and
distribution.

Challenges in Transportation and Infrastructure

Rural Accessibility Issues:

 Poorly maintained rural roads and lack of transportation infrastructure hinder
the smooth movement of livestock and livestock products from farms to
markets.
.

Processing and Slaughterhouse Challenges

Informal Slaughtering Practices:

 Due to the scarcity of modern processing facilities, informal and unregulated
slaughtering practices are common, impacting both animal welfare and meat
quality.

Regulatory Compliance Issues:

 Developing countries often face challenges in implementing and enforcing
regulations related to food safety and hygiene standards in processing
facilities.

Technological Interventions in Developing Countries

Mobile Technology for Market Access:

  Mobile technology has facilitated the development of market information
systems, providing smallholder farmers with real-time market prices and
demand information.
 .
Precision Agriculture Adoption:
 The adoption of cost-effective precision agriculture technologies is
improving livestock management practices among smallholders, enhancing
productivity.
3.2 Sustainability Challenges and Opportunities

A. Environmental Impact

Resource Scarcity:
 Ethiopia often face challenges related to resource scarcity, including water
and feed shortages.
 Sustainable farming practices are crucial to mitigate the environmental
impact of livestock production.
Deforestation and Land Use Change:
 The expansion of livestock farming can contribute to deforestation and
changes in land use patterns.
 Implementing sustainable land management practices is essential for long-
term environmental sustainability.

B. Socioeconomic Impacts

Livelihoods and Poverty Alleviation:

 Livestock farming provides a source of income and livelihood for many in
developing countries.
 Sustainable livestock practices can contribute to poverty alleviation and rural
development.
Gender Inclusivity:
 Women often play a significant role in smallholder livestock farming.
 Inclusive policies that empower women in the livestock supply chain can
enhance overall sustainability.
4 Recommendations to Enhance Efficiency and Effectiveness in
Ethiopia Livestock Supply Chains
Improving the efficiency and effectiveness of livestock supply chains in
developing countries is imperative for enhancing food security, supporting
livelihoods, and promoting economic growth. This section outlines strategic
recommendations based on existing research and successful interventions, aiming
to address the unique challenges faced by these supply chains.

Strengthening Smallholder Capacities

Training Programs:
 Implement comprehensive training programs for smallholder farmers on
modern farming techniques, animal husbandry practices, and sustainable
farming methods.
Access to Technology:
 Facilitate access to affordable technologies such as mobile apps for disease
monitoring, low-cost sensors, and precision agriculture tools to enhance
productivity and resource management.

Infrastructure and Transportation Improvements

Investment in Rural Infrastructure:

 Governments and relevant stakeholders should invest in improving rural
infrastructure, including road networks and transportation facilities, to
reduce post-harvest losses and increase market access.

2. Regulatory Compliance and Formalization

Capacity Building for Regulation:

 Strengthen regulatory bodies and provide training to ensure effective
implementation and enforcement of food safety and hygiene standards in
processing facilities.
 Support for Formalization:
 Encourage the formalization of informal slaughtering practices by providing
incentives, training, and assistance to small processors, ensuring compliance
with regulations.

3. Adoption of Sustainable Practices

Promoting Sustainable Livestock Farming:

 Introduce and promote sustainable farming practices, including organic and
regenerative agriculture, to address environmental concerns and enhance
long-term viability.
Financial Incentives for Sustainability:
 Implement financial incentives for farmers adopting sustainable practices,
creating a more environmentally friendly and economically viable livestock
supply chain.

4. Strengthening Market Access and Information Flow

Market Information Systems:

 Expand and enhance mobile-based market information systems to provide

farmers with real-time prices and demand information, facilitating informed
decision-making.

Facilitating Financial Inclusion:

 Promote financial inclusion through mobile banking and digital financial

services, allowing farmers to access credit and manage their finances more
efficiently.
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